Insolvency plan procedure & insolvency plan

Where can the insolvency plan procedure be used for restructuring or debt relief?


The insolvency plan procedure can be used in corporate insolvency as well as in private insolvency. The basic mechanism is the same in both cases: the debtor or the liquidator draws up a plan to restore the economic situation and satisfy the creditors, which then has to be approved by the creditors and the court.

Summary - Protective shield proceedings for companies in 2023 / 2024

    However, there are some differences in detail - private VS corporate insolvencyA way to reorganize your companyA guide to the possible course of the regular insolvency plan procedure:structure of the insolvency plan. Two important sections Voting on the bankruptcy plan Implementation of the bankruptcy plan and going concern: FAQ - bankruptcy plan procedure

However, there are some differences in detail - private VS corporate bankruptcy



Attached is a clear table with the main differences between the insolvency plan procedure for individuals and companies:

characteristic Insolvency plan procedure private Insolvency plan procedure company
Goal discharge of the debtor Reorganization and continuation of the company
Affected private persons companies, self-employed
bankruptcy reasons over-indebtedness, insolvency Over-indebtedness, threatened insolvency, inability to pay
bankruptcy plan Debt repayment and debt relief plan Company recovery and restructuring plan
creditor participation Creditors vote on the plan Creditors vote on the plan
liquidator Usually ordered Usually ordered
residual debt discharge Possible after completing the plan Not usual, as the focus is on corporate restructuring
impact on wealth Realization of assets possible Restructuring measures, liquidation of assets possible
Length of time Varies depending on plan completion Varies depending on the implementation of the recovery plan

Please note that this is a very simplified representation of the differences between the insolvency plan process for individuals and companies. >> For details, we recommend that you go through the current page completely.


Due to the high similarity of both cases, we mainly deal with the insolvency for companies in this page, as it occurs more frequently.

A way to rehabilitate your business

The insolvency plan procedure offers companies (regular insolvency) an opportunity to restructure in the event of financial difficulties while at the same time continuing business operations. It enables an individually tailored solution that takes into account the interests of the creditors as well as those of the company.



If the insolvency court and the creditors agree to this plan, the insolvency plan replaces the regular insolvency proceedings.

A guide to the possible course of the regular insolvency plan procedure:

1. Advice and preparation by, for example, an insolvency advisor:


First, you should consult a bankruptcy advisor (enquire here now) or a lawyer to assess your financial situation and discuss possible strategies. It is essential that you seek professional help as early as possible. Only through this you can fully understand all the options and see the best path for your business.


2. Application for insolvency proceedings and submission of a preliminary insolvency plan:


The application for the opening of insolvency proceedings is submitted to the responsible insolvency court. A preliminary insolvency plan should be submitted with the application, which contains an initial overview of the company's economic situation and a plan for its restructuring.


3. Preparation of the final insolvency plan:


After the insolvency proceedings have been opened, the final insolvency plan is drawn up. This should contain detailed information about the company's financial situation, the planned restructuring measures and their impact on creditors.



Structure of the insolvency plan. Two important sections.

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The plan contains a representative part in the first section:

The first section is called "performing part". This describes what needs to be done to steer the bankruptcy process in the right direction. This section also gives creditors a lot of information so they can get an idea of whether or not they should agree to the plan. This creates the "basis for the planned design of the rights of the participants" (§ 220 InsO)


The second section is called "creative part".

Here is how the rights of the various parties involved are to change as a result of the plan (cf. § 221 InsO). Creditors are divided into groups based on their status in the bankruptcy proceedings. Each group is then assigned certain rights. All creditors within a group are treated equally. This section also states how and by what means the debt should be settled. For example, it can be specified which debts are to be paid immediately, which are to be paid later and which are to be waived entirely.

Voting on the insolvency plan:

The insolvency plan is submitted to the creditors for approval. Upon approval by all creditor groups and confirmation by the court, the plan becomes final and its implementation can begin.

Implementation of the insolvency plan and continuation of the company:

After confirmation of the bankruptcy plan, the bankruptcy proceedings are lifted and the company can continue to operate. The insolvency plan is implemented and the company is restructured.


If you find yourself in a difficult financial situation and are considering whether the insolvency plan procedure is suitable for your company, do not hesitate to contact us. We are at your side with our expertise and help you to find the best way for your company.

FAQ - Insolvency plan procedure

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  • 1. When is an insolvency plan drawn up?

    An insolvency plan is usually drawn up at the initial stage of bankruptcy proceedings, after the company or the insolvency practitioner has filed an application to open bankruptcy proceedings.

  • 2. Who can apply for an insolvency plan procedure?

    An insolvency plan procedure can be requested by the debtor (the insolvent company) or by the insolvency administrator. The prerequisite is that the company is insolvent or overindebted but not yet insolvent.

  • 3. What exactly distinguishes the planned procedure from the standard procedure?

    The main difference between the insolvency plan procedure is the flexibility and the restructuring perspective.

  • 4. What does an insolvency plan include?

    An insolvency plan essentially contains two parts: a reporting part and a design part. The report section provides an overview of the company's economic situation. The formative part describes the planned measures to reorganize the company and their effects on the creditors.

  • 5. How is the insolvency plan decided?

    This plan must be approved by the creditors and the court. The insolvency plan procedure enables a tailor-made solution that takes into account both the interests of the creditors and those of the company.

  • 6. What happens if the insolvency plan is successfully implemented?

    If the bankruptcy plan is successfully implemented, the bankruptcy proceedings will be lifted and the company can continue to operate.

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